- Atlas Air, just one of the premier US cargo carriers, been given $407 million in authorities stimulus funding this spring.
- But organization at the Amazon contractor, like other logistics companies, boomed amid the pandemic.
- Rep. Jim Clyburn identified as on Atlas and its friends very last thirty day period to return the CARES Act funding, half of which is not needed to be repaid.
- Atlas executives say the organization absolutely capable for the revenue and that it is been expended on its intended reason: payroll.
- Take a look at Company Insider’s homepage for much more tales.
Atlas Air, a cargo airline which consists of Amazon as a significant client and investor, has observed company boom throughout the COVID-19 pandemic.
But this spring, as passenger carriers saw revenues plunge amid journey bans and lockdown orders, the corporation been given $407 million from the US’ payroll assist program. It was the biggest sum received by any cargo airline below March’s economic stimulus passed by Congress, only guiding significant passenger carriers like Delta and United. Just underneath 50 percent — $199,831,979 — should be repaid.
Now, with earnings and profits after once again nearing file highs previously mentioned pre-pandemic stages, Democratic Rep. Jim Clyburn claims Atlas and other cargo operators must return the complete sum of the authorities-furnished assist: “Congress meant for these taxpayer money to help save employment, not to offer windfalls to thriving organizations,” the South Carolina delegate wrote in a letter Oct 20.
Atlas executives disagree, indicating before in November that the corporation was “completely competent” for the cash, as laid forth by the Treasury Department.
“We are not intending to return the funds,” main executive John Dietrich mentioned, noting that it was not a want-dependent application. “We responded appropriately and have been in total compliance, not only with the committee’s request, but sharing the files and so forth that they have requested for, and we are going to carry on to entirely cooperate.”
Atlas Air did not promptly respond to a request for comment.
Scott Treibitz, a representative for IAP Nearby 2750, the union symbolizing lots of Atlas Air pilots, pointed to modern stock product sales by executives and questioned if the inventory would be at this sort of significant stages if not for the govt funding. The union has for many years been attempting to re-negotiate a new deal with Atlas, but say the firm has refused to appear to the desk.
To be sure, Atlas Air, like quite a few of its passenger and cargo peers, was substantially impacted by the pandemic, with gains falling additional than 85% in the first quarter of 2020. By the third quarter, which Atlas described on November 5, even so, income returned to a history-high.
“2020 unquestionably has been an unparalleled year,” Dietrich stated. “We assume volumes and yields in the fourth quarter to be driven by continued e-commerce expansion and 12 months-end airfreight need, coupled with the ongoing reduction of passenger stomach capability in the marketplace.”